Worldcoin and Tools for Humanity Fined $830K by South Korea for Violating Data Privacy Laws

As a seasoned analyst with years of experience in the tech and privacy sector, I find the recent fine imposed on Worldcoin by South Korea’s Personal Information Protection Commission (PIPC) a stark reminder of the importance of data privacy and transparency in today’s digital age. The violation of Korean regulations regarding biometric data handling is not only a breach of trust but also a potential risk to users’ personal information.


In a recent development, the South Korean Personal Information Protection Commission (PIPC) has imposed a penalty of approximately 1.1 billion Korean won ($830,000) on Worldcoin and its umbrella company, Tools For Humanity (TFH), for breaching the nation’s privacy laws. This penalty is a result of Worldcoin’s careless management of personal data, particularly in the process of gathering and disseminating biometric details such as iris scans.

It was discovered by the PIPC that Worldcoin didn’t clearly explain to users why and for how long they would store biometric information. Furthermore, prior to March 22, the project neglected to offer a Korean version of its consent form for biometric data collection, violating local regulations.

Violations and Fines

As an analyst, I’d rephrase that statement as follows:

It was pointed out that both Worldcoin and TFH did not disclose to their users the destination of their data transmission nor provide recipient contact information, which is in compliance with South Korean regulations. Furthermore, Worldcoin neglected to give users the ability to delete their iris data upon request.

Investigation Outcome and Worldcoin’s Response

In spite of the breaches found, the PIPC chose not to prohibit Worldcoin’s data gathering activities. Instead, the commission allowed Worldcoin to carry on operating in South Korea under the condition that it resolves the identified issues. The investigation into these matters, which started in February 2023, has now been completed, and Worldcoin is expected to adhere to local privacy laws going forward.

After the verdict, TFH expressed their approval of the PIPC’s decision. The firm admitted finding flaws in their initial privacy disclosures in South Korea during the investigation, but they emphasized that these issues have since been addressed.

According to a statement released by the company, the PIPC’s investigation found issues with the initial disclosures provided by TFH when it first launched in South Korea, which have since been addressed. This investigation ultimately confirms that TFH’s operations, including the utilization of the orb for human verification, align with the Personal Information Protection Act of South Korea.

Continued Global Expansion

Worldcoin, a venture started by TFH and led by Sam Altman, CEO of OpenAI, and Alex Blania, is developing a worldwide digital identification system. This system utilizes biometric data to safeguard against potential hazards caused by artificial intelligence. The project already has more than 6.7 million confirmed World IDs globally. Users can receive WLD cryptocurrency as a reward for partaking in iris scans using an Orb device.

As a researcher, I’m closely observing the global growth of Worldcoin, despite facing legal challenges in various regions. Notably, the project has recently rolled out World ID verification in Guatemala, Malaysia, and Poland, extending its presence to more than 160 countries worldwide. Additionally, this month, the company unveiled Face Auth, a novel feature that empowers users to authenticate their identity through a secure one-on-one face comparison process.

Worldcoin’s native cryptocurrency WLD experienced a 17% surge over the past 24 hours, placing it among the notable gainers within the top 100 coins in the market.

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2024-09-26 12:48